Islamabad, December 23, 2025: The Government of Pakistan on Tuesday concluded the long-awaited privatisation of Pakistan International Airlines (PIA), selling a 75% stake in the national carrier for Rs135 billion to the Arif Habib consortium, marking a major milestone in the government’s efforts to reform the loss-making airline.
The winning consortium is comprised of Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited. Of the total bid amount, Rs10.12 billion will go directly to the government, while the remaining proceeds will be reinvested into PIA to support operational improvements and fleet expansion. The government will retain a 25% stake in the airline, with the option for the successful bidder to acquire it later.
The second round of auction commenced after two of the three qualified parties submitted bids above the government’s minimum reference price of Rs100 billion. In the first round, the bids were as follows: Arif Habib consortium – Rs115 billion; Lucky Cement-led consortium – Rs101.5 billion; Air Blue consortium – Rs26.5 billion. As more than one bid exceeded the reference price, the process moved into an open auction, in which the Arif Habib consortium raised its offer to Rs135 billion, narrowly surpassing the Lucky consortium’s final bid of Rs134 billion.
The Privatisation Commission (PC) and the Cabinet Committee on Privatisation had earlier set and approved the reference price for the 75% stake, which was formally endorsed by the federal cabinet. A total of three consortia initially submitted sealed bids to acquire a controlling stake in PIA, with the Fauji Foundation having withdrawn from the race prior to bidding.
PC Chairman Muhammad Ali said the privatisation process was conducted with transparency, efficiency, and accountability. “Today’s PIA bidding is built on transparency, efficiency, and responsibility—supporting fairness, accountability, and public trust through a clear process,” he said, adding that the bids were opened in front of media representatives.
The government has structured the deal so that 92.5% of the proceeds from the sale will be reinvested into PIA, while 7.5% will go to the state. The airline’s fleet of 18 aircraft is projected to double within 3–4 years under the new management, according to the Privatisation Commission.
The privatisation of PIA forms part of Prime Minister Muhammad Shehbaz Sharif’s broader economic reform agenda aimed at reviving state-owned enterprises under the $7 billion International Monetary Fund (IMF) programme. Last year’s attempt to sell PIA had failed after Blue World City consortium’s sole bid of Rs10 billion for a 60% stake fell far below the minimum threshold of Rs85.03 billion, highlighting investor concerns over the airline’s financial health.
Business observers hailed the outcome of the process. Dr. Gohar Ejaz commented that the winning bidder must prioritize restoring PIA to its former glory, noting that the airline had lost Rs800 billion over the last 20 years. The successful sale marks a significant step in Pakistan’s ongoing efforts to restructure its cash-draining state-owned enterprises, improve fiscal sustainability, and restore investor confidence in the country’s privatisation programme.
